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  "docSlug": "637d86f8f55c",
  "documentTitle": "Duoyuan Global Water Inc. (DGW)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-04-04 00:00:00",
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  "notes": "This is a page from a Muddy Waters research report exposing fraudulent activities at DGW and DYP.",
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      "text": "DGW claims to sell its product to over 80 distributors in 28 provinces. In reality, its distribution network is barely existent at best.",
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      "text": "Both companies announced aggressive capital expenditure programs after going public. As we state infra, we believe that much of DGW’s reported and planned capital expenditures are illusory. We cannot opine on those of DYP, but we invite readers to form their own inferences.",
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      "kind": "paragraph",
      "text": "Guo). In other words, the complex structure enables the chairman to play a shell game with money. Further, companies with less capitalization receive less scrutiny in the PRC, which makes it easier to fool the local regulators.",
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      "text": "Both companies misrepresent property transactions in their public filings. Because property is a high priced asset, it is at the center of much corporate malfeasance in China. DGW mischaracterizes how its Langfang subsidiary obtained a portion of its property.",
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      "text": "DGW claims to sell its product to over 80 distributors in 28 provinces. In reality, its distribution network is barely existent at best.",
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      "text": "We are skeptical that funds raised have been used for their intended purposes – particularly with respect to capital expenditures. DGW has raised a net total of US$170.2 million from investors since going public in June 2009.",
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      "text": "DGW’s Claimed Distribution Network is a Sham.",
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      "text": "DGW Shows Little Evidence of Using Investor Funds for Capital Expenditures",
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